Africa Bleeds $1.6 Billion Daily from Illicit Money Flows — AfDB Raises Alarm

According to a NewsVista report, the African Development Bank (AfDB) has raised serious concerns over Africa’s massive financial losses due to illicit money transfers and profit-shifting by multinational companies. The losses reportedly exceed $1.6 billion every single day.

AfDB’s Chief Economist, Kevin Urama, shared this alarming insight during an interview with The PUNCH. He revealed that Africa loses close to $587 billion annually from corruption, tax evasion, and shady accounting practices by foreign corporations operating on the continent.

The International Monetary Fund (IMF) defines illicit financial flows as illegal cross-border money transfers stemming from activities such as smuggling, corruption, and terrorism financing. The IMF has long been involved in efforts to curb these destabilizing flows.

Urama stressed that Africa must focus more on stopping the outflow of wealth rather than chasing foreign investments. In 2022, Africa received about $174.5 billion in foreign direct investment and aid—three times less than what the continent is losing.

“We’re focusing on the wrong priorities,” Urama warned. “If I’m losing $600 billion, I’ll first fix that leak before chasing more money.”

He called for stronger institutions, better accountability, and smart policies backed by technology to monitor and stop financial leakages.

On Nigeria’s foreign exchange crisis, financial analyst Charles Abuede added that resolving insecurity, oil theft, and pipeline vandalism could boost crude output and strengthen the country’s forex earnings.

Meanwhile, the Central Bank of Nigeria (CBN) has issued a stern warning to banks involved in illegal forex transactions, amid the naira’s continued decline.

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